Ari Aisen Nigeria IMF Representatives Backs CBN Calls for Caution Over Cryptocurrency use in the Country
February 19, 2021 11:51 PM
Ari Aisen the resident representative of International Monetary Fund for Nigeria, in a recent interview aired his view on the Central Bank of Nigeria(CBN) directives that stop financial institutions from offering banking services to crypto business.
In the virtual interview Aisen also spoke about some of the CBN claims that "Cryptocurrencies we're being used for illicit transactions" in the country.
Aisen, who says that other central banks around the world have taken similar steps with cryptocurrencies. Aisen think "some care should be taken" regarding use of crypto, CBN only wants a solution for sustainability in the financial sector the IMF suggest.
In recent times we've seen a major gab between CBN naira to dollar exchange rate and major difference with the parallel market. Meanwhile, Aisen also calls on the Nigerian Monetary Authorites to look at the "unification of foreign exchange rates." The CBN pegged naira to US dollar exchange at 380:1, while on the parralel market it's much higher at 475:1.
"It would be useful to unify rates to allow the currency fluctuate as well as to make forex more accessible to those in need."
Countries have suffered from Covid-19 outbreak and Nigeria hasn't been an exception with the country experiencing a major drop in revenue. Also Nigeria is facing shortages on foreign exchange which has pilled much pressure on local currency Naira.
The representative added by advising the government against increasing the country tax rates instead, the government should expand the tax base and block leakages by strengthening the Tax administration.